Thread by @CryptoShadowOff

If you find it's TOO difficult to grind your account up.

& trading is not making a difference.

It MAY simply be because you don't have ENOUGH money

If this doesn't make instant sense...

Here is thread for you must read 👇

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"Why You Need Proper Capitalization To Trade"

(1/16) - First Lets Create A Quick Story.

Imagine spending 3 months of time.

Of stress. Of sleepless nights.

Just to 2X a $5000 account.

(2/16) 'You get to 10,000$'

But your brain can't stomach another 3 months of stress.

So what do you do? You increase the risk.

But wait. Woops. Sorry. Crypto shat the bed.

Now you are six months in and you are back at 6000$.

(3/16) 'You resolve to never let this happen again'

So you grind back up at 2% risk.

When you get to $10,000. You stay at 2% risk.

But at 100% gains a year.

It dawns on you.

You'd be better off at McDonalds.

(4/16) - The above story encases this entire problem

Even if you have SKILLS - trading with low capital:

- Makes you more likely to over-risk
- Allows you no rest
- Forces you to play dangerously
- Will stress you out more
- Bring desperation
- Returns little for time spent

(5/16) - But the worst problem about it?

The less capital you have

The more likely a losing streak will erode your return per R.

1. Going from 120K to 60K is VERY different
2. That going from 10K back to 5K

Why?

(6/16) - It's About What It's Worth

They both STING - but:

- 5% return on 60K is still worth your time.
- 5% on 5K is not.

Having more capital gives you the flexibility to make mistakes.

Whilst STILL having the ability, to make money that is DECENT.

Not worms.

(7/16) - Now, to slightly back pedal

1. Since the slogan of low capital is desperation
2. It's likely to knock you off balance.

You DO need urgency to make cash and study.

- But the more DESPARATE you are in trading.
- The more process orientation goes out of the window

(8/16) - Process orientation can be defined as:

- Sticking to a defined set of rules
- A way of playing
- A particular behaviour set
- A profit taking habit
- An entry criteria / habit
- Categorized setups

Which is the DIRECT opposite of desperate energy.

(9/ 16) - It also becomes impossible for most people to swerve:

- Skewed analysis
- Recency bias
- Euphoria
- Depression
- Correct risking

Whilst secretly praying for a huge hail Mary trade.

(10/16) - Which leads me onto the next point.

Your brain is designed to save you from pain.

It'll find ANY way it can to release you from the pain.

(Like it was designed to)

Except in trading - it can come in the form of

'Temporarily making you feel better'

(11/16) - Which leads to conscious or subconscious sabotage

You will make mistakes with process orientation.

EVEN IF you consciously make effort NOT to.

Why? Because your brain knows deep down.

You don't want the stress.

So it'll find ways to save you.

(12 / 16) - Which manifest in many ways

- Taking profit early
- Over risking to feel better
- Seeing things that are not there
- Entering bad trades, to 'feel' something

You do your trade log with one hand.

You jack off with the other.

(13/16) - Contrast with a man that has 100K:

- Only trades when the best setup appears
- Not desperate for opportunities

'Because when they come, they make big cash'

- Feels no need to trade
- Patience is heart warming, not painful
- Has more room for errors
- Gets paid more

(14/16) - So What Can You Do?

1. Use low capital strictly for training
2. Once you are ready? Find less stressful means of funding an account
3. Fund it
4. Enjoy more painless trading

The key is also to differentiate:

- Are you still training?
- Or are you READY to trade

(15/16) - A Side Note

As a side note:

There are MANY people in this game that started with peanuts.

And are now millionaires.

I'm not saying you can't do this.

But I'm saying for most of you it's

A - Not gonna happen
B - Too stressful
C- Creates a virus in your method

(16/16) - What Is A Method Virus?

Well. If you've got from 1000$ to 1M by high lev over-risking

1. If you STILL have that programming
2. Eventually you'll blow up

Unless you know to risk on risk off properly

You will b divorced from trading immortality

Thanks for reading 🤝